Appendix 1

A – ENGLAND & WALES

ELIGIBILITY FOR APPOINTMENT AS AUDITOR, INDEPENDENT EXAMINER OR SCRUTINEER

1. Where gross income does not exceed £25,000
The Trustees may appoint a Scrutineer, i.e. an independent person who is reasonably believed by the Trustees to have the requisite knowledge and practical experience to carry out the work programme for Scrutineers. The terms of engagement should be specified in writing, referring to the Work Programme in Appendix 3. Alternatively they may, if they wish, appoint an Independent Examiner or a Registered Auditor.

2. Where gross income is more than £25,000 but does not exceed £100,000

The Trustees will normally appoint an Independent Examiner who is an independent person they reasonably believe to have the requisite ability and practical experience to carry out a competent examination of the accounts. The Charity Commission for England & Wales has previously suggested a person such as a bank or building society manager or retired accountant. They may not appoint a Scrutineer but they may, if they wish, appoint a Registered Auditor

3. Where gross income is more than £100,000 but does not exceed £250,000

The Trustees will normally appoint an Independent Examiner who must have a recognised accounting qualification that the Trustees believe is appropriate in the circumstances. (In cases of doubt in relation to the qualification the Trustees should seek guidance from the District/County/Area/Region Treasurer). They may not appoint a Scrutineer or Independent Examiner who does not hold a recognised accounting qualification but they may, if they wish, appoint a Registered Auditor.

4. Where the gross income exceeds £250,000 but does not exceed £1 million in the year, and gross assets are less than £3.26m

The requirements are as in 3 above, but the qualification holder must be a member of one of the following bodies:
 the Institute of Chartered Accountants in England & Wales;
 the Institute of Chartered Accountants of Scotland;
 the Institute of Chartered Accountants in Ireland;
 the Association of Chartered Certified Accountants;
 the Association of Authorised Public Accountants;
 the Association of Accounting Technicians;
 the Association of International Accountants;
 the Chartered Institute of Management Accountants;
 the Institute of Chartered Secretaries and Administrators;
 the Chartered Institute of Public Finance and Accountancy;
 the Certified Public Accountants Association;
 the Institute of Financial Accountants;
 the Certified Public Accountants Association (England & Wales and Northern Ireland only)
or
 A fellow of the Association of Charity Independent Examiners (England & Wales only);

5. Where the gross income exceeds £1 million in the year, or gross income exceeds £250,000 and gross assets exceed £3.26m.

The Trustees must appoint a Registered Auditor to carry out an audit.
The annual limits in 1 to 3 above and the lower limit in 4 above refer to the year under review.
The appointee cannot hold any other position in the Group, District or County/Area, as appropriate

A – SCOTLAND
ELIGIBILITY FOR APPOINTMENT AS AUDITOR, INDEPENDENT EXAMINER OR SCRUTINEER

1. Where gross income does not exceed £24,999
The Trustees will normally appoint an Independent Examiner who is an independent person they reasonably believe to have the requisite ability and practical experience to carry out a competent examination of the accounts. The OSCR have suggested a person such as a bank or building society manager or retired accountant. Alternatively they may wish to appoint a Registered Auditor

2. Where gross income is more than £25,000 but does not exceed £499,999

The Trustees will normally appoint an Independent Examiner who must have a recognised accounting
qualification that the Trustees believe is appropriate in the circumstances and be a member of one of the following bodies:
 the Institute of Chartered Accountants in England & Wales;
 the Institute of Chartered Accountants of Scotland;
 the Institute of Chartered Accountants in Ireland;
 the Association of Chartered Certified Accountants;
 the Association of Authorised Public Accountants;
 the Association of Accounting Technicians;
 the Association of International Accountants;
 the Chartered Institute of Management Accountants;
 the Institute of Chartered Secretaries and Administrators;
 the Chartered Institute of Public Finance and Accountancy;
 the Certified Public Accountants Association;
 the Institute of Financial Accountants;
or
 A full member of the Association of Charity Independent Examiners
 A person appointed by the Accounts Commission for Scotland
 The Auditor General for Scotland

They may not appoint an Independent Examiner who does not hold a recognised accounting qualification but they may, if they wish, appoint a Registered Auditor.

3. Where the gross income exceeds £500,000

The Trustees must appoint a Registered Auditor to carry out an audit.
The annual limits in 1 and 2 above and the lower limit in 3 above refer to the year under review.
The appointee cannot hold any other position in the Group, District, or Region, as appropriate.

A - NORTHERN IRELAND
ELIGIBILITY FOR APPOINTMENT AS AUDITOR, INDEPENDENT EXAMINER OR SCRUTINEER

1. Where gross income does not exceed £25,000

The Trustees will normally appoint an Independent Examiner who is an independent person they reasonably believe to have the requisite ability and practical experience to carry out a competent examination of the accounts. The Charity Commission for Northern Ireland has previously suggested a person such as a bank or building society manager or retired accountant. They may not appoint a Scrutineer but they may, if they wish, appoint a Registered Auditor.

2. Where gross income is more than £25,001 but does not exceed £500,000

The Trustees will normally appoint an Independent Examiner who must have a recognised accounting
qualification that the Trustees believe is appropriate in the circumstances and be a member of one of the following bodies:
 the Institute of Chartered Accountants in England & Wales;
 the Institute of Chartered Accountants of Scotland;
 the Institute of Chartered Accountants in Ireland;
 the Association of Chartered Certified Accountants;
 the Association of Authorised Public Accountants;
 the Association of Accounting Technicians;
 the Association of International Accountants;
 the Chartered Institute of Management Accountants;
 the Institute of Chartered Secretaries and Administrators;
 the Chartered Institute of Public Finance and Accountancy;
 the Certified Public Accountants Association;
 the Institute of Financial Accountants;
 the Certified Public Accountants Association
or A full member of the Association of Charity Independent Examiners

They may not appoint a Scrutineer or Independent Examiner who does not hold a recognised accounting qualification but they may, if they wish, appoint a Registered Auditor.

3. Where the gross income exceeds £500,000

The Trustees must appoint a Registered Auditor to carry out an audit.
The annual limits in 1 and 2 above and the lower limit in 3 above refer to the year under review.
The appointee cannot hold any other position in the Group, District or County, as appropriate.

B – ENGLAND & WALES, SCOTLAND AND NORTHERN IRELAND
TYPES OF ACCOUNTS

1. Gross income in the year for Groups, Districts and Counties/Areas/Regions (excluding membership fees paid to Headquarters), does not exceed £250,000

England & Wales, Scotland and Northern Ireland:

Either Receipts and Payments Accounts together with a Statement of Assets and Liabilities may be adopted or, if the Trustees wish, they may produce Accruals Accounts.
If the Receipts and Payments basis is chosen the accounts must comply with the relevant regulatory guidance which is based on the Statement of Recommended Practice (SORP)

England & Wales: CC16 Receipts and payments

Scotland: Scottish Charity Accounts guidance booklet

Northern Ireland: ARR03 Receipts and payments accounts guidance

2. Gross income in the year for Groups, Districts and Counties/Areas/Regions (excluding
membership fees paid to Headquarters) exceeding £250,000

England & Wales:
Accruals Accounts must be produced. They must comply with the full requirements of the SORP and with CC17 - Accruals Accounts Pack – SORP FRS 102 which is guidance based on the SORP.

Scotland:
Accruals Accounts must comply with the full requirements of the SORP and with Part 3 of the Scottish Charity Accounts guidance produced by the OSCR.

Northern Ireland:
Accruals Accounts must comply with the full requirements of the SORP and with ARR04 – Accrual Accounts guidance produced by the Charity Commission for Northern Ireland.